Veradigm Announces Extension of Its Stockholder Rights Plan

Veradigm (OTCMKTS: MDRX), a leading provider of healthcare data and technology solutions, recently announced amendments to its Stockholder Rights Plan. The Board of Directors (“the Board”) officially approved these amendments on February 20, 2025.

Originally adopted on February 26, 2024, the Rights Plan was set to expire on February 26, 2025. The new amendments extend the scheduled expiration date of the Rights Plan to August 20, 2025. The adjustments also modify the exercise price for the purchase of rights under the Rights Plan from $50.00 to $32.00.

The extension of the Rights Plan comes in the wake of the Board’s evaluation of ongoing risks and conditions mirroring those present during the initial adoption of the Rights Plan. Key factors include the ongoing audit of the company’s 2025 financial statements, anticipated delays in current financial reporting due to the 2025 audit and related restatement, and the continued challenges of tracking an accumulation of shares due to the delisting of the Company common stock.

A significant decline in the price of the Company common stock following the announcement of the termination of the exploration of strategic alternatives further influenced the decision to prolong the Rights Plan.

The Board underscored the fact that Veradigm and its shareholders continue to face the risk of quick and significant accumulation of stock and derivative positions. Veradigm could potentially become susceptible to a creeping takeover, wherein an investor acquires a considerable percentage of outstanding shares of Company common stock without making any public disclosure regarding its control intent or paying a control premium.

The Rights Plan was implemented with the goal of offering all Veradigm shareholders the opportunity to fully realize the potential value of their investment. By maintaining this protective measure, the Board intends to safeguard shareholder interests and reduce the probability of control being gained without appropriately compensating all shareholders.

The Plan does not prevent the company from pursuing any offer that is fair and otherwise in the best interests of its shareholders.

Further details about the amendments to the Rights Plan can be found in a Current Report on Form 8-K, to be filed by the Company with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Veradigm’s 8K filing here.

Veradigm Company Profile

Veradigm Inc, a healthcare technology company, provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records (EHR), information connectivity, private cloud hosting, outsourcing, analytics, patient access, and population health management solutions.